Entrepreneurship 101: Understanding Business Model Canvas - Distribution Channels

In the previous post we talked about the importance of Customers and why you should emphasize on the target group for your solution. For this post we'll talk about the importance of Distribution Channels and how you can leverage them to push your idea/solution. This again is one of the crucial aspect that you need to consider when venturing out to work on your idea.

Distribution Channels in Business Model

After you have defined the Value Proposition and the Customers, you should now think about how to convey your value proposition to your customers. In short, the channel or distribution channel as it is known, helps you to list down the ways you will move/sell your idea to the customer. For instance your idea is to provide web hosting services for your customers. So how do you distribute it ? Since this is a completely online service, one way could be via e-commerce website.

Distribution Channels in Business Model Canvas

These channels can be either physical distribution channel or virtual. And this depends on the products/services that you plan to sell. If your idea is to sell a new IoT based product, you could probably do it by pushing it to electronic stores (physical distribution channel) or through e-commerce websites (virtual)

Example Business Model Canvas - Distribution Channel

Continuing with the example of Uber from the previous posts, let's see what are the distribution channel for Uber as per the Business Model Canvas. You might have already guessed and chances are high that you are right. Since Uber is primarily an app based service, they offer the service only via virtual distribution channel. In this case it is website and mobile app.

Business Model Canvas of Uber. Image Courtesy: Business Models Inc

That's all about Distribution Channels in Entrepreneurship 101: Business Model Canvas - Distribution Channels. No matter what your idea or solution is, you need to have ways in which you plan to sell this to your customer. If you have already thought of that idea of yours, how do you think you would want to distribute it ? Let us know in the comments below.